RBI’s monetary policy meet today, analysts expect repo rate to remain unchanged
Finance Minister Arun Jaitley had mooted for a reduction in interest rates while citing a stable inflation rate, normal monsoon forecast.
The Reserve Bank of India will release details of its second bi-monthly monetary policy meet at 2.30 pm on Wednesday. Most analysts have predicted that the six-member monetary policy committee will keep the 6.25% repo rate unchanged. The repo rate helps control inflation.
The panel, led by RBI Governor Urjit Patel, started its interest rate review amid the Centre’s lobbying for a cut in borrowing cost to help push private investments. Several analysts told PTI that the apex bank will consider changing the rates only after the start of the Goods and Services Tax regime on July 1. Bank of Baroda’s Chief Economist BS Misra was the only one to differ. He told The Hindu that a normal monsoon, inflation-neutral Goods and Service Tax rates will make way for a cut in rates.
On Monday, Finance Minister Arun Jaitley had mooted a reduction in interest rates while citing a stable inflation rate, normal monsoon forecast and an indication of stable oil prices. “Growth and investment need to improve,” PTI quoted Jaitley as saying. “These are indicators, which are available. Any finance minister under these circumstances would like a rate cut, the private sector would like a rate cut.”